eBusiness Weekly
Business Writer
Econet Wireless Zimbabwe grew its revenue market share to 84,2 percent in the fourth quarter of 2017, up from 8,6 percent in the third quarter of the same year, the Postal and Telecommunications Regulatory Authority of Zimbabwe (Potraz)’s said.
The report by Potraz, regulator of the telecommunications industry in Zimbabwe, showed that in the fourth quarter, Econet’s customer market share jumped to 53,1 percent in 4th quarter, up from 51,7 percent recorded in the previous quarter.
The sector, dominated by Econet Wireless and State owned NetOne and Telecel Zimbabwe, saw its combined number of active subscribers grow by 2,1 percent to 14 092 104 from 13 799 648 in the previous quarter, according to the industry report.
The report showed that the sector growth in subscriber numbers was largely driven by Econet’s growth in active customers of 4,9 percent in quarter four, where NetOne grew its subscribers by 1,8 percent, and Telecel lost 8,2 percent of its active subscribers.
Econet’s voice traffic market share slightly eased to 78,2 percent, from 80,9 percent in the previous quarter, while Telecel`s voice market share remained unchanged at 7 percent, and NetOne recorded a 1,9 percent increase, going up to 14 percent in the fourth quarter from 12,1 percent recorded in the previous quarter.
Econet maintained its strong market leadership in mobile internet and data usage, exiting quarter four at 64,6 percent market share, while NetOne recorded a 29,2 percent market share.
While the report showed NetOne increasing its share of total mobile data usage by 6,5 percent (with Econet and Telecel’s age dipping by 5,5 percent and 1,1 percent respectively) the growth in usage by NetOne did not translate into growth in revenue market share.
Zimbabwe’s mobile telecommunications network operators are struggling to invest in the latest technology due to an acute shortage of foreign currency in the country, the Postal and Telecommunications Regulatory Authority (Potraz) has said.
Despite the debilitating effect the hard currency shortages have had on operators, annual revenue for the telecoms sector jumped 17,6 percent to $849,9 million, more than half the cumulative top line for Zimbabwe’s entire telecoms industry.
As the world moves towards 5G -which is seen bringing extra bandwidth needed to create what is commonly referred to as the Internet of Things, linking not just phones and computers, but also robots, cars, sensor-equipment, consumer products and infrastructure- Zimbabwe is lagging behind with regard to technology such as 4G/LTE.
Of the 8 378 base stations in the country as at 31 December 2017, only 931 are Long Term Evolution (LTE). The balance, 4804 is second generation (2G) and 2643 and third generation (3G).
Despite the need to invest in LTE technology, released in 2009, Zimbabwe’s mobile networks registered a decline in investment last year.
Total investment declined by 46,3 percent to $100,8 million for 2017, Potraz said in its 2017 annual performance report.
“International traffic is a major source of foreign currency for the telecommunications sector, as Zimbabwe has always been a net-receiver of international traffic and revenues. The huge decline in international incoming traffic volumes has a negative impact on the foreign currency earnings by the sector,” Potraz said.
Zimbabwe’s entire telecommunications sector revenues increased by 11,8 percent to $1,1billion from $1 billion recorded in 2016.
The increase in revenue for mobile networks is attributable to growth of 89, 8 percent in mobile internet and data usage to 15,360 terabytes, coupled with growth in mobile money as Zimbabweans used electronic modes of payment due to a cash crisis.
The total number of active mobile money subscriptions increased by 42,5 percent to reach 4, 706,778 in 2017 from 3, 303,188 recorded in 2016 while the value of transactions totaled $4billion, Potraz said in the annual report.
Zimbabwe’s largest mobile network operator, Econet’s market share grew 3,7 percent to 53 percent at the end of 2017 on account of a 17,1 percent growth in active subscribers. NetOne accounted for 35,2 percent of market share and Telecel had 11,7 percent.
Growth in mobile internet and data usage, Potraz director general Dr Gift Machengete said, was expected to grow going forward.
“Because of Over-The-Top services (OTT) and with ICT innovation coming, we hope the trend will persist and even go higher,” Dr Machengete said, adding industry growth will be driven by internet and data. WhatsApp in 2017 accounted for 47percent of data usage.
The year 2017, said Potraz, marked an upturn in sector revenues from the depressed growth experienced since 2014.
“Revenues by Internet Access Providers registered the biggest growth rate of 17,8 percent to $186,8 million from $158,6 million in 2016. The growth in telecommunications revenues was attributed to the upsurge in the consumption of data and internet in the country.
The total number of active mobile subscriptions was 14,1 million, representing a 9,4 percent growth from 12,9 million in 2016.
Total voice traffic including fixed voice declined by 5,7percent to 4 400 994 563 minutes from 4 666 909 037 minutes recorded in 2016.
The 2017 decline is the fourth consecutive year voice traffic has declined; however, the rate of decline reduced from 20 percent in 2016, largely as a result of significant increase in mobile voice traffic of 14 percent, registered in the fourth quarter of 2017.
The total number of active fixed telephone lines declined by 13, 6 percent to record 264,150 from 305,720 achieved in 2016.
As a result, the fixed tele-density declined from 2,4 percent recorded in 2016 to 1,9 percent in 2017. Active mobile subscriptions increased by 9,4 percent to 14 092 104 in 2017 from 12 878 926 recorded in 2016.
As such, the mobile penetration rate increased by 7,9 percent to reach 102,7 percent in 2017 from 94,8 percent recorded in 2016.
Dr Machengete said the market is reaching saturation. He, however, said most Zimbabweans have more than one mobile device and the country should strive to reach penetration rates of around 120 percent.
The total number of active internet subscriptions increased by 3,7 percent to 6 971 617 from 6 721 947 subscriptions recorded in 2016. Potraz has put in place a $7 million funding facility to support technological innovation among the country’s youths.
